Hydrogen fuel cell company Plug Power (PLUG 8.25%) hasn't been a favorite of investors in recent weeks. For the month of March, the stock is down more than 35%. That downtrend took a breather Tuesday morning after the company announced plans for a new hydrogen production facility. As of 11:35 a.m. EDT, Plug Power shares were up 9%.
Plug Power announced Tuesday that it plans to begin construction on a new green hydrogen plant on the Susquehanna River in south-central Pennsylvania next year. The plant, which will produce hydrogen using 100% renewable energy, will be the third in the company's network, joining an existing plant in Tennessee and another planned for western New York that the company announced last month. The plants are part of an alliance the company has with renewable energy company Brookfield Renewable Partners (BEP 0.41%). Brookfield will supply electricity to produce the hydrogen using hydroelectric power.
The planned Pennsylvania plant will produce 15 metric tons of hydrogen per day, while the New York plant will have the capacity to produce 45 metric tons per day. Plug's longer-term plan is to build out a network that will supply 500 tons per day of green hydrogen by 2025 and 1,000 tons per day by 2028.
"This is another step in our quest to build the green hydrogen economy in the USA and globally thereafter," Plug Power CEO Andy Marsh said in a statement.
Tuesday's stock move is a bit of a relief rally. Earlier this month, Plug Power said it would need to restate its financial information back to 2018, though it said the restatements will not affect its cash position or business strategy. This announcement helps support that position.